Source · Select Committees · Business and Trade Committee

Recommendation 3

3 Acknowledged

Enhance UK-EU cooperation against unfair trade practices, including forced labour and industrial subsidies.

Recommendation
The UK should work closely with the EU to strengthen coordinated action against non-market economies that undermine the international trading system through unfair practices, including use of forced labour, industrial subsidies, state-owned enterprise advantages, and forced technology transfers. Enhancing cooperation on trade defence instruments—such as anti-subsidy and anti-dumping measures—along with alignment of safeguards against use of forced labour in supply chains will help ensure a more effective and consistent response to market distortions that threaten fair competition. (Recommendation, Paragraph 15)
Government Response Summary
The government notes existing UK-EU cooperation on economic stability and supply chain security through regular exchanges and high-level meetings. It states it is exploring ways to exchange views on economic security policies and is reviewing its internal approach to minimise forced labour in supply chains.
Government Response Acknowledged
HM Government Acknowledged
At the UK-EU Summit, the UK and EU reaffirmed our dedication to maintaining global economic stability and the importance of cooperating to safeguard our supply chains and monitor trade diversion. Stronger economic ties enhance our shared economic security. We underlined the importance of regular exchanges between EU and UK interlocutors, and agreed that high-level meetings should take place regularly to consider our joint strategic interests, including on economy and trade. Through the Security and Defence Partnership, the EU and the UK will also explore ways to exchange views on external aspects of their respective economic security policies, including through formal dialogues. The Department for Business and Trade is reviewing its approach to responsible business conduct policy, focussing on how the UK can minimise the risk of forced labour and environmental harms occurring in the supply chains of businesses operating in the UK.